CO129-606-4 Hong Kong Loan- government grant 1-4-1947 - 2-3-1948 — Page 93

Wt. 29448/552 9/46 50m. S. & S. Ltd.

C. O.

Mr. Palmer

Mr.

Mr..

Mr...

815 1814

Mayle 11/4

DRAFT.LETTER.

D.R. SERPELL ESQ OBE

TREASURY.

4.11.46

Permt. U.S. of S.

Parly. U.S. of S.

Secretary of State.

Dear Serpell,

T

54126/6/47

tu. Falmer's

4755358/467 In your letter of 13th March 52150/4) you

Copy of No.5164125/1/46

30.12.46164

1

asked for a picture of the future financial prospects

of Malayan Union, Singapore and Hong Kong. In this

letter I will attempt to deal with the Hong Kong

position on the basis of such information as is

already in our possession.

Copy of No.1/36550/19/477

38/54126/1/467

2. A copy of the Governor's despatch No.48 40/54126/1/467 of 24th July 1946 was enclosed in Mayle's letter to

James of 22nd August and I now enclose a copy of a 51/54126/1/467 further despatch No.164 transmitting the 1946/47

Draft

/Copy of draft below file/ making fair copy for this

26.347 No.3/53652/47

No.

1.

;

Estimates. Unlike the Malayan Union and Singapore,

Hong Kong had no reserves on which to draw, and in

consequence all expenditure has had to be met from

current revenue, public loans or loans from H.M.G.

The latest estimate regarding 1946/47 was that given 55/54126/1/467 in the Governor's telegram No.450 indicating that

1.4.47.

1 on this file 7

FURTHER ACTION.

3/53652/477

Capen sent to

quis Wieloon

revenue will amount to £4,875,000 and expenditure t

£5,625,000 necessitating assistance from H. M.G. in

1946/47 of £750,000. In addition ($40,000,000)

£2,500,000 special expenditure is chargeable to loan

funds. As regards 1947/48 a copy of telegram

No.533 is enclosed, which shows that the Government

aims at balancing the budget so far as recurrent

expenditure is concerned but special expenditure of $60,000,000 (£3,750,000) will have to be met from

loan funds. Thus up to 31.3.48 Hong Kong's

/estimated